Bitcoin Crashed Below $34,000 Level Can Buyers Regain Momentum?

Bitcoin moved below the $47,000 support level, followed by a potential Head and Shoulder pattern. As a result, the price crashed below the $34,000 level from where buyers’ can regain the momentum?

Let’s find the price direction from some Bitcoin Technical Analysis.

Bitcoin Crashed Below $34,000 Level Can Buyers Regain Momentum?

Bitcoin is the first and only cryptocurrency in the world that topped the market capitalization of $1 Trillion. On the journey to $1 Trillion, it has managed to get institutional traders’ attention where many investment firms and companies, such as MicroStrategy and Tesla invested billions of dollars into this particular coin.

MicroStrategy disclosed a $15 million Bitcoin purchase last Thursday, as it bought an additional 271 coins at an average price of $55,387 per Bitcoin, even as the crypto market raced lower. MicroStrategy has now spent $2.24 billion on bitcoin

Bitcoin Corporate Crypto Coffers, Source: Bloomberg

Despite the massive acceptance, Bitcoin plunged due to a negative tone from Tesla CEO Elon Musk and Beijing.

Bitcoin shook lower as soon as Elon Musk said that Tesla would not accept Bitcoin as a payment method. Moreover, the bearish sentiment increased more quickly as Beijing banned banks and other payment providers from providing cryptocurrency-related services.

As a result, Bitcoin cracked down below $34,000 after months that created panic among speculators. Can Bitcoin push higher?

Let’s see the upcoming price direction from the Bitcoin technical analysis:

Bitcoin Daily Chart

Bitcoin rallied higher since the beginning of 2021 where the price made an all-time high at the $64,953.84 level. Later on, the price moved below the $59,500.00 level with a daily close and became corrective.

btcusd d1 - Bitcoin tested the $47,000.00 level after moving down from the all-time high.

In the above image, we can see the daily chart of Bitcoin where the price tested the $47,000.00 level after moving down from the all-time high.

Later on, the price corrected higher but failed to sustain above the $59,500.00 level.

Therefore, sellers’ took control over the price and crashed it to the $30,000.00 level following by a neckline breakout from the Head and Shoulder pattern.

As the price is exhausted at the $30,00.00 level with a daily candle with a long wick downside, the price may correct higher before making another bearish pressure. In that case, $47,000 would be the primary target of the correction from where any strong bearish daily close may resume the current bearish trend.

Bitcoin H4 Chart

Based on the Ichimoku Cloud on the BTCUSD H4 chart, the price rallied below the Kumo Cloud after a strong bearish H4 close on 12 May 2021.

btcusd h4 - Based on the Ichimoku Cloud on the BTCUSD H4 chart, the price rallied below the Kumo Cloud after a strong bearish H4 close on 12 May 2021.

In the above image, we can see that the price moved lower by creating lower lows where Chikou Span is below the price. Moreover, the future cloud is bearish, but Tenkan Sen is below the price.

Currently, the price is facing minor resistance from dynamic 20 EMA and Kijun Sen, where rejection from these levels may resume the bearish trend. On the other hand, any bullish H4 close may take the price towards the $47,000.00 level.

Besides, RSI is moving up from the oversold 20 levels, indicating an extension to the bullish correction. Therefore, based on Ichimoku Cloud on H4, the price may increase and test the $47,000.00 level before making another bearish swing.

Is Bitcoin A Buy?

As of the above discussion, Bitcoin has a higher possibility to continue the bullish pressure towards a $47,000.00 resistance level in the coming session. Moreover, investors should keep an eye on the price action at the $47,000.00 level, where any strong bullish Daily close above this level may create hope for long-term buyers.

Conversely, if the intraday chart comes below the dynamic 20 EMA, the price may become volatile. In that case, investors should wait for a solid bullish rejection from Kijun Sen in H4 to consider the trend as bearish.

William Edwards
William Edwards
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